Vopak doubles investment in gas and industrial infrastructure to €2 billion by 2030

Royal Vopak has announced plans to invest an additional €1 billion in its gas and industrial terminals by 2030, effectively doubling its previous commitment to €2 billion. This decision was unveiled during the company's Capital Markets Day, reflecting a robust market demand for infrastructure and a positive industry outlook.

The majority of these investments will focus on gas infrastructure to enhance energy security and affordability. Significant funds are also earmarked for growth markets, including India and China. This strategic move aims to expand Vopak's footprint in gas and industrial terminals while divesting less profitable assets in the oversupplied chemicals sector.

In addition to the increased investment, Vopak has raised its operating cash return target to over 13%, up from the previous goal of above 12%. This adjustment follows a year-on-year improvement, with the metric reaching 15.1% in 2024.

The company also reaffirmed its ambition to allocate €1 billion towards energy transition infrastructure by 2030. This includes developing infrastructure solutions for low-carbon fuels, sustainable feedstocks, ammonia as a hydrogen carrier, liquid CO₂, and battery energy storage. Part of this initiative involves repurposing existing oil capacity at hub locations for low-carbon alternatives.

Financially, Vopak aims to maintain a proportional leverage ratio between 2.5 and 3.0, ensuring a robust balance sheet with sufficient financial flexibility. The company remains committed to delivering attractive shareholder returns through a progressive dividend policy and will evaluate share buyback programmes annually.

CEO Dick Richelle expressed confidence in capturing additional growth opportunities in gas, industrial infrastructure, and energy transition projects. He highlighted the company's resilient business model and strategic execution as foundations for future growth.

These initiatives underscore Vopak's commitment to enhancing its financial and sustainability performance while adapting to evolving energy demands and market dynamics.